Securities Law & Instruments

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CSA Staff Notice 33-317
Next Steps in the CSA’s Work to Enhance the Obligations of
Advisers, Dealers and Representatives Toward Their Clients



March 31, 2016

The Canadian Securities Administrators (the CSA, us or we) are providing advance notice of the upcoming publication of CSA Consultation Paper 33-404 -- Proposals to Enhance the Obligations of Advisers, Dealers, and Representatives Toward Their Clients (the Consultation Paper){1}. The Consultation Paper, anticipated to be published toward the end of April 2016, will seek comment on proposed regulatory action aimed at strengthening the obligations that advisers, dealers and representatives (registrants) owe to their clients.

The Consultation Paper is the result of continuing CSA work, including consultations and research on the relationship between clients and registrants. It follows the publication on December 17, 2013, of CSA Staff Notice 33-316 -- Status Report on Consultation under CSA Consultation Paper 33-403: The Standard of Conduct for Advisers and Dealers: Exploring the Appropriateness of Introducing a Statutory Best Interest Duty When Advice is Provided to Retail Clients (CSA Staff Notice 33-316). CSA Staff Notice 33-316 provided a status report on the best interest consultation initiative and identified key themes that emerged from the initial CSA consultation paper on the appropriateness of introducing a statutory best interest standard, which was published on October 25, 2012{2}.

The Consultation Paper is the next step in the CSA's work toward improving the relationship between clients and registrants. It follows the comments received on the initial consultation paper, the key themes we summarized in CSA Staff Notice 33-316, and builds on our consultations and research work.

Regulatory action is required to better align the interests of registrants to the interests of their clients, to improve outcomes for clients, and to clarify the nature of the client-registrant relationship for clients. It is in this context that the CSA will be launching an important consultation on specific proposals to enhance the obligations of registrants towards their clients, and we invite stakeholders to be aware of this upcoming publication.

The comment period will run for a period of 120 days. We encourage commenters to provide comments on the full range of issues identified in the Consultation Paper.

Questions

If you have any comments or questions, please contact any of the CSA staff listed below.

Jason Alcorn
Sophie Jean
Senior Legal Counsel
Directrice de l'encadrement des intermédiaires
Financial and Consumer Services Commission of New Brunswick
Autorité des marchés financiers
Tel: 506-643-7857
Tel: 514-395-0337, ext. 4801
<<jason.alcorn@fcnb.ca>>
Toll Free: 1-877-525-0337
<<sophie.jean@lautorite.qc.ca>>
 
Jane Anderson
Bonnie Kuhn
Director, Policy & Market Regulation and Secretary to the Commission
Manager, Legal Market Regulation
Nova Scotia Securities Commission
Alberta Securities Commission
Tel: (902) 424-0179
Tel: 403-355-3890
<<jane.anderson@novascotia.ca>>
<<bonnie.kuhn@asc.ca>>
 
Chris Besko
Maye Mouftah
Director, General Counsel
Senior Legal Counsel
The Manitoba Securities Commission
Compliance and Registrant Regulation
Tel: 204-945-2561
Ontario Securities Commission
Toll Free (Manitoba only): 1-800-655-5244
Tel: 416-593-2358
<<chris.besko@gov.mb.ca>>
<<mmouftah@osc.gov.on.ca>>
 
Gérard Chagnon
Jeff Scanlon
Analyste expert en réglementation
Senior Legal Counsel
Direction de l'encadrement des intermédiaires
Compliance and Registrant Regulation
Autorité des marchés financiers
Ontario Securities Commission
Tel: 418 525-0337, ext. 4815
Tel: 416-204-4953
Toll Free: 1-877-525-0337
<<jscanlon@osc.gov.on.ca>>
<<gerard.chagnon@lautorite.qc.ca>>
 
Sarah Corrigall-Brown
Senior Legal Counsel, Capital Markets Regulation
British Columbia Securities Commission
Tel: (604) 899-6738
<<scorrigall-brown@bcsc.bc.ca>>

{1} This Notice is being published in all provinces and territories except Saskatchewan. The Financial and Consumer Affairs Authority of Saskatchewan will advise of their approach in this matter after the provincial election in Saskatchewan.

{2} CSA Consultation Paper 33-403 -- The Standard of Conduct for Advisers and Dealers: Exploring the Appropriateness of Introducing a Statutory Best Interest Duty When Advice is Provided to Retail Clients and CSA Staff Notice 33-316 are available on the websites of the members of the CSA.